Food Processing Industry Invests Nearly Rs 4,900 Crore Under PLI Scheme: According to the government, the production-linked incentive (PLI) scheme has so far attracted investments of Rs 4,900 crore from the food processing sector. The PLI scheme for the food processing industry was approved in March 2021, with a budget outlay of Rs 10,900 crore. It will be implemented for seven years, until 2026-27.
January 2023 Current Affairs Quiz
More About This Development:
In total, 182 applications for the PLI scheme for the food processing industry have been approved. This includes 30 applications for millets-based products under the PLI scheme (8 large entities and 22 SMEs). Incentives of Rs 800 crore are probably going to be given out in the current fiscal year. Sales-based incentive of Rs 107.3 crore has been disbursed so far.
Its Significance:
PLI beneficiaries’ investments are likely to increase sales and exports of food products. The scheme requires that the entire chain of manufacturing processes, including primary processing of food products, take place in India in order to qualify for the incentive, which is expected to boost domestic industry. It was also stated that the scheme will aid in the promotion of Indian brands abroad.
The ministry stated that a total of 112 food processing projects were completed and operationalised during 2022, leveraging private investment of Rs 706.04 crore and generating direct and indirect employment for 25,293 people. Throughout the year, about 190 projects related to food processing were approved.
About Food Processing Industry:
Food processing is the transformation of raw ingredients into food, or of food into other forms (ie. food processing may denote direct manufacturing of food or value addition on existing food). Food processing typically takes harvested crops or butchered animal products and uses these to produce long shelf-life food products.
Why are food processing industries significant?
- India is a land famous for food production. More than 50% of the Indian population work in Agriculture related activities. If there are good food processing industries in India, raw materials like grains or meat can be converted into food for domestic and foreign consumption.
- Food processing units acts as a link between agriculture and industries.
- A significant portion of workers from the agriculture sector, who experience covert unemployment, can be absorbed by the food processing sectors. It can lead to better productivity and GDP growth.
- Food processing prevents food wastage and helps in attaining food security.
- Processed food requires less space for storage.
- Processed food can be exported. This may help us in getting foreign exchange reserves.
